Failed to Disclose a Virtual Currency on Your Tax Return? You May be Receiving Either an “IRS Letter 6173,” “IRS Letter 6174,” or “IRS Letter 6174-A” in the Very Near Future

Failed to Disclose a Virtual Currency on Your Tax Return? You May be Receiving Either an “IRS Letter 6173,” “IRS Letter 6174,” or “IRS Letter 6174-A” in the Very Near Future

Tax Law
By Anthony Diosdi On July 26, 2019, the Internal Revenue Service (“IRS”) issued IR-2019-132, a press release. IR-2019-132 announced that the IRS will be sending letters to persons that participated in virtual currency transactions. For individuals receiving this letter, there are three variations: Letter 6173, Letter 6174, or Letter 6174-A. IRS Letter 6173 IRS Letter 6173 states in relevant part: “We have information that you have or had one or more accounts containing virtual currency and may not have met your U.S. tax filing and reporting requirements for transactions involving virtual currency, which include cryptocurrency and non-crypto virtual currencies.”This correspondence indicates that the IRS may know that there is unreported income received through virtual currency transactions. Anyone who receives an IRS Letter 6173 must reply to this notice either by…
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